Distribution companies (discoms) owed a total of Rs 54,834 crore to power generation companies in November 2018, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).
About Rs 30,000 crore of bank guarantees will have to be readied by August 1.
The Budget should have out-of-the box solutions or should allow the old system of subsidies and money distribution to continue.
Supreme Court may have given the power sector some leg room but the environment is not conducive for deals in the sector
While it is easy to blame discoms, remember that they are also under political pressure to not increase tariffs and turn a blind eye towards theft etc
India will have to find out ways to cope with an Rs 4.8 lakh crore debt burden in the power sector. This, however, is most likely to be taken up by the new government formed after the 2019 general elections
As many as 41 state utilities were ranked on the basis of aggregate technical and commercial losses (AT&C), billing efficiency and financial parameters.
Notwithstanding the somewhat weak performance on operational parameters, improvement in DISCOM finances will be hugely beneficial to the entire power sector.
Mizoram has become the 27th state to join UDAY scheme meant for revival of debt-stressed discoms which will help it get overall benefits of Rs 198 crore during the period of turnaround.
Power Grid was under pressure on bourses last week as the street factored in lower return on equity (RoE) after the Central Electricity Regulatory Commission (CERC) proposed to reduce regulated RoE for renewables.
REC has inked a pact with Karnataka Power Corp (KPCL) and Bangalore Electricity Supply Company (BESCOM) to extend Rs 39,121 crore financial assistance to the power companies for the next 5 years.
The funds can be used by DISCOMs for multiple activities including up-gradation of distribution network and IT infrastructure, building consumer awareness campaigns, setting up consumer helplines, training employees, rating installers etc.
JSW Energy signed a short-term power purchase agreement with Karnataka State Electricity Board. DK Shivakumar of the Energy Department at the Government of Karnataka speaking to CNCB-TV18 confirmed the news saying the government has tied up with the company for 600-750 MW of power.
Indicating signs of turnaround under Uday scheme meant for revival of loss-making discom, Haryana's Dakshin Haryana Bijli Vitaran Nigan (DHBVNL) has reported a profit of Rs 201.35 crore in first half of 2016-17.
The year saw solar tariffs falling below Rs 5 (USD 0.07)/ kWh, which led to solar power gaining parity with other sources of greenfield power and Bridge to India sees the tariff to break the Rs 4/kWh mark in the coming year.
Finance cost is lower due to rupee being stronger, said RN Misra, Chairman & MD of SJVN.
"The government has mandated that the old notes of Rs 500 and Rs 1000 denominations can be used by the citizens to pay pending utility bills which will help DISCOMs due to their huge backlog of unpaid bills," the report said.
The securities will have a face value of Rs 100 issued in equal strips with a maturity at the end of 10th, 11th, 12th, 13th, 14th and 15th year, the RBI said in a statement.
Maharashtra has become the 17th state to join the UDAY scheme, meant for financial turnaround of debt-laden power distribution utilities, and it will help the state save around Rs 9,725 crore on account of cheaper funds and cut in AT&C losses.
Anil Swarup, Secretary at Ministry of Coal is very confident of uptick in coal demand going forward because the per capital power consumption in the country is much below that of China.
The DERC had issued the order following directions from the city government in this regard. The discom said the Delhi government's orders are not binding on the power regulator.
"The deadline for transferring discoms' debt to state budget and issuing bonds for 50 percent outstanding was March 31, 2016. The Union Cabinet decided to extend this date to March 31, 2017," Finance Minister Arun Jaitley said at a press conference after the Union Cabinet meeting here.
The 6.3 percent price hike effected by Coal India will not have an impacted on off-take, Coal Secretary Anil Swarup said, adding that demand for coal continues to remain high even a bottleneck remains in the form of distressed power distribution companies.
The message was conveyed by Chief Minister Arvind Kejriwal in a meeting that was attended by representatives of the private distribution companies BSES, Tata Power (TPDDL) and also the chairman of Delhi Electricity Regulatory Commission (DERC).
Union Power Minister Piyush Goyal today said within a short span of three weeks the states could sell bonds worth Rs 1 trillion.